Jay Clayton Approved as New SEC Chair

By:
Chris Gaetano
Published Date:
May 3, 2017
SECURITIES-AND-EXCHANGE-COMMISSION-facebook

The Senate approved corporate attorney Jay Clayton last night as the new chair of the Securities and Exchange Commission, according to CNN Money. The 61-37 vote means that he will replace the former chair Mary Jo White, who stepped down in January, though there are still two more vacancies left to fill on the commission. Clayton, who Trump nominated in January, has numerous ties to prominent companies. He has worked on high-profile IPOs, such as Chinese retailer Alibaba, and represented Goldman Sachs in connection with its $10 billion bailout from the federal government. Because of this, Democrats expressed concerns that, given his client history, he would need to recuse himself from too many SEC matters, according to CNN. While confirmed as chair, ethics rules will in fact require him to recuse himself from enforcement matters for his first two years in office on matters involving former clients, as well as things to do with his former law firm, Sullivan and Cromwell. 

While he said he has no specific plans to roll back the Dodd-Frank measures, he is known to take a jaundiced view of many financial regulations. For example, he feels that federal foreign anti-bribery rules hobble U.S. firms trying to expand overseas. He has also expressed worry that congressional response to scandals like Enron have resulted in rules too burdensome for small businesses trying to raise capital. 

Click here to see more of the latest news from the NYSSCPA.